Richdads-CASHFLOW-Quadrant-

Chapter Nine
It Is Simple and Easy
In theory, the numbers and transactions on the right side of the
CASHFLOW Quadrant are simple, regardless of whether we’re talking
about stocks, bonds, real estate, or businesses. To be financially well off
simply means being able to think differently, to think from different
quadrants and to have the courage to do things differently. To me,
one of the hardest things a person who is new to this way of thinking
has to go through is the countless number of people who will tell you:
“You can’t do that.”
If you can overcome that kind of limited thinking and seek out
people who say to you, “Yes, I know how to do that. I’d be happy to
teach you,” your life will be much easier.
The Laws
I started this chapter with the Tax Reform Act of 1986. While that
was a significant rule change, it won’t be the last. I only use the Tax
Reform Act as an example of how powerful some rules and laws can be.
If a person is to be successful in the B or I quadrant, he or she needs to
be aware of market forces and any changes in the law that affect those
market forces.
Today in America there are thousands upon thousands of pages of
tax law. That’s just for the IRS alone. The federal laws come to more
than 1.2 million pages of laws. It would take the average reader 23,000
years to read the entire U.S. IRS Code. Every year more laws are created,
repealed, or amended. It would be more than a full-time job just to keep
up with the amendments.
Every time someone tells me, “That’s against the law,” I reply by
asking them if they have read every line of code in America. If they say
yes, I leave slowly, backing up toward the door. Never turn your back
on someone who thinks they know every law.
To be successful on the right side requires seeing five percent with
your eyes and 95 percent with your mind. Understanding the laws and
market forces is vital for financial success. Great transfers of wealth
often occur when laws and markets change, so it is important to pay
attention if you want to have those changes work in your favor, and
not against you.
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